Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold...
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Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,700 pounds of oysters in August. The companys flexible budget for August appears below:
Quilcene Oysteria
Flexible Budget
For the Month Ended August 31
Actual pounds (q)
7,700
Revenue ($4.15q)
$ 31,955
Expenses:
Packing supplies ($0.40q)
3,080
Oyster bed maintenance ($3,500)
3,500
Wages and salaries ($2,500 + $0.40q)
5,580
Shipping ($0.60q)
4,620
Utilities ($1,200)
1,200
Other ($510 + $0.01q)
587
Total expenses
18,567
Net operating income
$ 13,388
The actual results for August were as follows:
Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds
7,700
Revenue
$ 27,300
Expenses:
Packing supplies
3,250
Oyster bed maintenance
3,360
Wages and salaries
5,990
Shipping
4,350
Utilities
1,010
Other
1,207
Total expenses
19,167
Net operating income
$ 8,133
Required:
Calculate the companys revenue and spending variances for August.
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